Amid concerns about TikTok's data collection and algorithm, the U.S. government has been in talks with its parent company ByteDance, but Beijing has taken a lead role, making it more difficult to reach a resolution.

For over two years, the Chinese social media platform has been negotiating with the Committee on Foreign Investment in the U.S. The committee has proposed an agreement allowing a third party in the states to review the code for its recommendations.

But the Biden administration is looking for ByteDance to sell its American business, hoping to ensure protection from spying or political interference. However, ByteDance executives are less inclined to sell or transfer its technology, The Wall Street Journal reported.

In a statement, TikTok said, "Under our proposed agreement with Cfius, no technology will change hands ... We are hopeful that this agreement will allow us to address national security concerns while complying with Chinese export regulations."

While China-U.S. tensions continue to rise, Beijing seeks to retain its properties. Recently, China attempted to strengthen regulations protecting its Chinese-created content-recommendation algorithms. Lawyers told the Journal it's a sign the Chinese government will be playing a significant role in any dealings with TikTok.

When the Trump administration advocated for TikTok's sale in 2020, China put its algorithms into an export-control list. ByteDance said the sale would require an OK from the Chinese government, which was never granted, according to official records.

The talks have been on and off between ByteDance and Chinese authorities without much substance, according to the Journal.

Recently, the cyberspace regulator named a director from its division to the board of Beijing Douyin Information Service Co., ByteDance's primary Chinese entity, as reported by the Journal.

The move is a result of the regulator's acquisition of a 1% share in April 2021.

China appears to be aware of the U.S.'s mounting concern over TikTok, as a Dec. 27 piece by Global Times newspaper said American politicians are growing "jittery about TikTok's tech, rising influence," as reported by the Journal. It also said China would "protect its own core technologies and would not allow technology robbery by any party."

China has attempted to amend its definition of recommendation algorithms so that artificial intelligence technologies could not be exported without a license, reported the Journal. Within a 20-year period, it has only made changes to the exports twice.

If TikTok were to share its algorithms outside of the country, it would most likely require government approval if it was made in China.

Winston Ma, an adjunct professor at New York University, studying digital economy and global tech regulations told the Journal "If a potential TikTok divestment is again possible like 2020, it may create a TikTok legal tug of war 2.0."

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